To sum up, the BEP-20 token standard is used to produce cryptocurrency tokens for the BNB Smart Chain, while the BNB Beacon Chain uses the BEP-2 standard. The BEP-20 token standard is frequently compared to Ethereum’s ERC-20 token since they are pretty similar in many aspects. But what distinguishes one from the other?īEP-2 is the BNB Beacon Chain’s token standard, while BEP-20 regulates tokens on BSC. The BNB Chain ecosystem’s dual-chain architecture enables interoperability through the native BNB token, which powers the BEP-20 and BEP-2 token standards. You can trade BNB like any other cryptocurrency and also use it in various apps and use cases, including reducing Binance exchange trading fees, paying for transaction fees made via the BNB Chain, and purchasing goods and services online and in-store.
#Binance smart chain upgrade#
Bruno hard fork upgrade that increased the burn rate of BNB The creation of BNB auto-burn, a new protocol that is both verifiable and objective Some of the upgrades Binance announced are: Such improvements are expected to benefit the community’s users, developers and projects. Alongside the rebranding, more advancements to BNB have also been announced, including technical upgrades to realize decentralization further. It also serves as a governance token, apart from fueling transactions on the BNB Chain, much like gas on Ethereum.īNB ownership is required for participation in the BNB Chain decentralized on-chain governance. The BNB token, formerly known as the “Binance Coin,” now stands for “Build and Build.” BNB is the cryptocurrency that fuels the BNB Chain ecosystem and the native coin of both the BNB Beacon Chain and the BNB Smart Chain. This move is part of the crypto giant’s effort to go beyond Binance. By 2019, it switched over to the Binance Chain and fueled the establishment of the BSC network, which was officially launched in September 2020.Īs a result of the token’s growth on BSC, Binance now considers BNB as the token for a greater ecosystem, including the Binance Chain and BSC. It was initially created as an ERC-20 token on the Ethereum network in 2017. Over time as public interest in alternative financial solutions grew, the use cases of blockchain technology also increased.Īccording to Binance, the BNB token has continuously evolved since its debut.
BSC was formed around the time the DeFi movement was also taking off. As Binance gained popularity, so did BSC. The BNB Chain promises users that it will be:īinance and BNB were established in 2017, while BSC was introduced three years later. The BNB Chain aims to increase interoperability and develop the underlying infrastructure of the “world’s parallel virtual environment,” a step forward in Binance’s recent MetaFi efforts. The recently released BNB Chain comprises the BNB Beacon Chain for BNB Chain governance (i.e., staking and voting) and the BNB Smart Chain, which remains Ethereum Virtual Machine-compatible. That should help make BNB essential to the eventual development of what Binance calls “MetaFi.” What is the BNB Chain?Īccording to Binance CEO Chanpeng Zhao, “BNB” is an abbreviation for “Build ’N Build.” In a tweet, Zhao shared that “BNB stands for “Build the community, and let the community build, build, ’n build.” The effort hopes to alleviate criticisms regarding BSC being overly centralized.īinance envisions positioning BNB as a token for the BSC ecosystem, which serves several sectors, including GameFi and the non-fungible token (NFT) industry. To date, Binance has invested more than $1 billion in the BSC ecosystem to support its ongoing and intensifying rivalry with the Ethereum network and other layer-1 blockchain systems. “We’ve done a lot of work to decentralize it and hope to make BNB go beyond Binance,” he added. “People always think of BSC as part of Binance because it carries the company’s name,” said Binance CEO Changpeng Zhao. The relaunch of Binance’s layer-1 or base blockchain is part of a plan to link it to the protocol’s governance token-BNB-to expand and build on decentralization. BSC, crypto exchange Binance’s layer-1 blockchain, recently announced the merger of the Binance Smart Chain and the Binance Chain to form the BNB Chain. The Binance Smart Chain (BSC) is now the BNB Chain.